Or. Admin. R. 150-316-0181 - Moving Expense Deduction — for Part-year and Nonresidents

150-316-0181
Moving Expense Deduction — for Part-year and Nonresidents

(1) A moving expense deduction will be allowed only if it applies to taxable years beginning prior to January 1, 2018 and the requirements described in subsection (2) are met. For tax years beginning after December 31, 2017 and before January 1, 2026, only active-duty military personnel may claim a deduction if the requirements described in subsection (2) are met.

(2) To be deductible from the Oregon portion of federal adjusted gross income, moving expenses must be connected with employment within Oregon. Thus, for a part-year or nonresident taxpayer, the moving expenses incurred are deductible only if the taxpayer’s new principal place of work is within Oregon. Moving expenses incurred by a part-year or nonresident taxpayer for the purpose of beginning work at a new principal place of employment outside of Oregon are not deductible.

Example 1: Matt moves from Oregon to California to begin work there. The moving expenses are not deductible.

Example 2: Paul moves from Utah to Oregon to begin work in Oregon. The moving expenses are deductible.

Example 3: Sally moves from Oregon to Washington to begin work in Oregon. The moving expenses are deductible.

Example 4: Greg moves from Nevada to Washington to begin work in Oregon. The moving expenses are deductible.

Example 5: Anne moves from Montana to Oregon to begin work in Washington, lives in Oregon temporarily and then settles in Washington. The moving expenses are not deductible.

Example 6: Sue moves from Florida to Oregon to begin work in Idaho. While the expenses are not related to Oregon employment, they are deductible if they were paid after Sue became a full year resident of Oregon. Reimbursement of moving expenses shall be included in the Oregon portion of federal adjusted gross income if the moving expenses are connected to Oregon employment.

Example 7: John moves from California to Oregon to begin work in Oregon. His employer reimburses him $10,000, which includes $4,000 of qualified moving expenses under IRC 132. John includes $6,000 of income in the Oregon portion of federal adjusted gross income. The reimbursement of $4,000 is not included in income and is not claimed as a deduction.